Persistence and Determinants of Firm Profit in Emerging Markets

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThe paper studies the persistence of prot and its determinants in emerging markets. We apply Markov chain analysis, dynamic panel GMM estimation, and quantile regression techniques to a panel of approximately 3,000 Ukrainian companies.The empirical results show a moderate level of prot persistence, as well as a relatively low speed of adjustment to the steady-state prot level, thus providing no support for the hypothesis that there is a lower persistence of prots in emerging markets due to more intense competition. Regarding the determinants of rm prot in an emerging market economy, the ndings from alternative methods reveal that ownership structure and regional location of the rm have a signicant impact.

The persistence of bank profit

“…The persistence of profit has been found to be lower in developing countries than in developed countries. This pattern is attributed to lower sunk costs of entry, faster economic growth, and the presence of large conglomerate firms in developing countries, all of which may tend to increase the intensity of competition experienced by domestic firms (Glen et al, 2001;Stephan and Tsapin, 2008).…”

The Murder Epidemic: A Global Comparative Study

“…Therefore, the hypothesis that Latin America is characterized by the highest degree of homicides in the world is tested. The theoretical basis for persistence in homicides fundamentally builds on the extant literature on convergence in development studies, notably: financial (Goddard, Liu, Molyneux, & Wilson, 2011; Stephan & Tsapin, 2008) and inclusive (Asongu & Nwakwuku, 2017a) developments. Moreover, the theoretical foundations are consistent with mainstream literature on income levels which has been documented within the remit of neoclassical growth models (see Barro, 1991; Barro & Sala-i-Martin, 1992, 1995; Mankiw, Romer, & Weil, 1992; Baumol, 1986).…”

Dynamic Determinants of Access to Weapons: Global Evidence

“…The theoretical basis for investigating the determinant of access to weapons is broadly in line with both contemporary and non-contemporary literature on the hysteresis (or persistence) of (in) economic phenomena. On the contemporary front, we find recent studies that have focused on inclusive development (see Mayer-Foulkes, 2010;Asongu, 2014;Asongu & Nwachukwu, 2017a); financial intermediary development (Stephan & Tsapin, 2008;Goddard et al, 2011) and stock market development (Narayan et al, 2011;Bruno et al, 2012;Asongu, 2013). Conversely, non-contemporary studies constitute the bulk of seminal papers on cross-country economic convergence (see Baumol, 1986;Barro, 1991;Mankiw et al, 1992;Barro & Sala-i-Martin, 1992.…”